For the third quarter of 2013, net sales were $1.125 billion, an
increase of 24 percent over the third quarter of 2012. Diluted earnings
per share were $0.37, compared to $0.24 in the prior year quarter.
Diluted EPS before charges/gains were $0.46, compared to $0.29 the prior
year. Operating income was $98.6 million, compared to $60.6 million in
the prior year quarter. Operating income before charges/gains was $121.6
million, compared to $72.9 million the prior year.

"Sales were up double digits vs. last year for each of our segments in
the third quarter, with our home product segments growing a combined 26
percent. Importantly, total operating income before charges/gains
increased 67 percent," Klein said.

For each segment in the third quarter 2013, compared to the prior-year
quarter:

Kitchen & Bath Cabinetry net sales were up 36 percent. Operating
income before charges/gains increased $23.7 million over last year to
$36.8 million, with GAAP operating income increasing $12.6 million.
The sales increase was led by growth in dealers and home centers, with
a continued improvement in repair and remodel volume and mix.

Plumbing & Accessories net sales were up 22 percent, and operating
income before charges/gains was up 36 percent with share gains across
the business.

Advanced Material Windows & Door Systems net sales were up 14 percent,
as entry doors and windows each grew double digits. Operating income
before charges/gains for the segment increased 39 percent, while GAAP
operating income was down 8 percent.

Security & Storage net sales were up 10 percent, with a security sales
increase of 7 percent and double digit tool storage sales growth.
Segment operating income before charges/gains was up 42 percent.

"We delivered strong sales and profit growth across all segments of our
business in the third quarter and have built solid momentum throughout
the year," said Klein. "We believe we are still in the early stages of a
multi-year housing recovery driven both by demand for new homes and
consumers' desire to improve existing homes. Importantly, we remain
confident in our ability to leverage our structural competitive
advantages to continue to outperform our market, and we are well
positioned for 2014."

Company Raises Annual Outlook for 2013

Based on the Company's continued strong performance, its continued
confidence in the home products market recovery and expectation to
continue outperforming the market, the Company now expects full-year
2013 net sales to increase 15 to 16 percent. The Company now expects
diluted EPS before charges/gains to be in the range of $1.47 to $1.49.
This targeted range compares to 2012 diluted EPS before charges/gains of
$0.89.

"Our cash position increased in the third quarter, even as we
repurchased $30 million of our shares in the quarter," said Lee Wyatt,
chief financial officer. "As of September 30, 2013, cash increased to
$157 million and debt decreased to $356 million. We expect to generate
approximately $300 million in free cash flow in 2013 and end the year
with net-debt-to-EBITDA around zero."

About Fortune Brands Home & Security, Inc.

Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in
Deerfield, Ill., creates products and services that help fulfill the
dreams of homeowners and help people feel more secure. The Company's
trusted brands include Master Lock security products, MasterBrand
cabinets, Moen faucets, Simonton windows and Therma-Tru entry door
systems. FBHS holds market leadership positions in all of its segments.
FBHS is part of the S&P MidCap 400 Index. For more information, please
visit www.FBHS.com.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING
STATEMENTS

This press release contains certain "forward-looking statements"
regarding business strategies, market potential, future financial
performance and other matters. Statements preceded by, followed by or
that otherwise include the words "believes," "expects," "anticipates,"
"intends," "projects," "estimates," "plans," "outlook," and similar
expressions or future or conditional verbs such as "will," "should,"
"would," "may" and "could" are generally forward-looking in nature and
not historical facts. Where, in any forward-looking statement, we
express an expectation or belief as to future results or events, such
expectation or belief is based on the current plans and expectations of
our management. Although we believe that these statements are based on
reasonable assumptions, they are subject to numerous factors, risks and
uncertainties that could cause actual outcomes and results to be
materially different from those indicated in such statements. Our actual
results could differ materially from the results contemplated by these
forward-looking statements due to a number of factors, including but not
limited to: (i) our reliance on the North American home improvement,
repair and new home construction activity levels, (ii) the North
American and larger global economies, (iii) risk associated with
entering into potential strategic acquisitions and integrating acquired
companies, (iv) our ability to remain innovative and protect our
intellectual property, (v) our reliance on key customers and suppliers,
(vi) the cost and availability associated with our supply chains and the
availability of raw materials, (vii) risk of increases in our
postretirement benefit-related costs and funding requirements, and
(viii) changes in tax, environmental and federal and state laws and
industry regulatory standards. These and other factors are discussed in
Item 1A of our Annual Report on Form 10-K for the year ended December
31, 2012, filed with the Securities and Exchange Commission. The
forward-looking statements included in this release are made as of the
date hereof, and except as required by law, we undertake no obligation
to update, amend or clarify any forward-looking statements to reflect
events, new information or circumstances occurring after the date hereof.

Use of Non-GAAP Financial Information

This press release includes measures not derived in accordance with
generally accepted accounting principles ("GAAP"), such as diluted
earnings per share before charges/gains, operating income before
charges/gains, free cash flow, and net debt-to-EBITDA before
charges/gains. These measures should not be considered in isolation or
as a substitute for any measure derived in accordance with GAAP and may
also be inconsistent with similar measures presented by other companies.
Reconciliations of these measures to the most closely comparable GAAP
measures, and reasons for the Company's use of these measures, are
presented in the attached pages.

FORTUNE BRANDS HOME & SECURITY, INC.

(In millions, except per share amounts)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2013

2012

% Change

2013

2012

% Change

Net Sales (GAAP)

Kitchen & Bath Cabinetry

$

448.6

$

329.7

36.1

$

1,186.3

$

987.1

20.2

Plumbing & Accessories

338.1

278.2

21.5

969.6

804.2

20.6

Advanced Material Windows & Door Systems

181.0

158.4

14.3

481.7

431.4

11.7

Security & Storage

157.4

142.8

10.2

417.9

420.5

(0.6

)

Total Net Sales

$

1,125.1

$

909.1

23.8

$

3,055.5

$

2,643.2

15.6

Operating Income (Loss) Before Charges/Gains (a)

Kitchen & Bath Cabinetry

$

36.8

$

13.1

180.9

$

87.0

$

27.7

214.1

Plumbing & Accessories

65.9

48.5

35.9

176.2

127.5

38.2

Advanced Material Windows & Door Systems

8.6

6.2

38.7

10.6

(0.1

)

N/A

Security & Storage

29.5

20.8

41.8

68.1

53.7

26.8

Corporate Expenses

(19.2

)

(15.7

)

(22.3

)

(50.7

)

(42.3

)

(19.9

)

Total Operating Income Before Charges/Gains

$

121.6

$

72.9

66.8

$

291.2

$

166.5

74.9

Earnings Per Share Before Charges/Gains (b)

Diluted

$

0.46

$

0.29

58.6

$

1.12

$

0.66

69.7

EBITDA Before Charges/Gains (c)

$

145.5

$

96.0

51.6

$

358.4

$

236.4

51.6

(a) Operating income (loss) before charges/gains is operating income
(loss) derived in accordance with U.S. generally accepted accounting
principles ("GAAP") excluding restructuring and other charges,
income from a contingent acquisition consideration adjustment, an
asset impairment charge and the impact of income and expense from
actuarial gains or losses associated with our defined benefit plans.
Operating income (loss) before charges/gains is a measure not
derived in accordance with GAAP. Management uses this measure to
evaluate the returns generated by FBHS and its business segments.
Management believes this measure provides investors with helpful
supplemental information regarding the underlying performance of the
Company from period to period. This measure may be inconsistent with
similar measures presented by other companies. A reconciliation to
operating income, the most comparable GAAP measure, is included in
subsequent tables.

(b) Diluted EPS before charges/gains is net income calculated on a
diluted per-share basis excluding restructuring and other charges,
income from a contingent acquisition consideration adjustment, asset
impairment charges and the impact of income and expense from
actuarial gains or losses associated with our defined benefit plans.
Diluted EPS before charges/gains is a measure not derived in
accordance with GAAP. Management uses this measure to evaluate the
overall performance of the Company and believes this measure
provides investors with helpful supplemental information regarding
the underlying performance of the Company from period to period.
This measure may be inconsistent with similar measures presented by
other companies. A reconciliation to diluted EPS, the most closely
comparable GAAP measure, is included in subsequent tables.

(c) EBITDA before charges/gains is net income derived in accordance
with GAAP excluding restructuring and other charges, income from a
contingent acquisition consideration adjustment, asset impairment
charges, the impact of income and expense from actuarial gains or
losses associated with our defined benefit plans, depreciation,
amortization of intangible assets, interest expense, and income
taxes. EBITDA before charges/gains is a measure not derived in
accordance with GAAP. Management uses this measure to assess returns
generated by FBHS. Management believes this measure provides
investors with helpful supplemental information about the Company's
ability to fund internal growth, make acquisitions and repay debt
and related interest. This measure may be inconsistent with similar
measures presented by other companies. A reconciliation from net
income, the most closely comparable GAAP measure, is included in
subsequent tables.

FORTUNE BRANDS HOME & SECURITY, INC.

CONDENSED CONSOLIDATED BALANCE SHEET (GAAP)

(In millions)

(Unaudited)

September 30,

December 31,

2013

2012

Assets

Current assets

Cash and cash equivalents

$

157.0

$

336.0

Accounts receivable, net

517.7

381.7

Inventories

463.1

357.2

Other current assets

135.8

153.0

Total current assets

1,273.6

1,227.9

Property, plant and equipment, net

513.5

509.4

Goodwill

1,521.1

1,381.4

Other intangible assets, net of accumulated amortization

760.7

683.6

Other assets

50.4

71.6

Total assets

$

4,119.3

$

3,873.9

Liabilities and Equity

Current liabilities

Notes payable to banks

$

5.6

$

5.5

Current portion of long-term debt

-

22.5

Accounts payable

344.4

287.0

Other current liabilities

357.9

317.4

Total current liabilities

707.9

632.4

Long-term debt

350.0

297.5

Deferred income taxes

227.9

224.0

Accrued defined benefit plans

193.7

252.7

Other non-current liabilities

85.8

82.6

Total liabilities

1,565.3

1,489.2

Stockholders' equity

2,550.5

2,381.1

Noncontrolling interests

3.5

3.6

Total equity

2,554.0

2,384.7

Total liabilities and equity

$

4,119.3

$

3,873.9

FORTUNE BRANDS HOME & SECURITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Nine Months Ended September 30,

2013

2012

Operating Activities

Net income

$

166.3

$

101.1

Depreciation and amortization

66.2

79.0

Asset impairment charges

27.4

-

Recognition of actuarial losses

5.6

3.7

Deferred income taxes

(0.9

)

5.6

Other noncash items

20.6

17.4

Changes in assets and liabilities, net

(119.0

)

(87.4

)

Net cash provided by operating activities

$

166.2

$

119.4

Investing Activities

Capital expenditures, net of proceeds from asset sales

$

(53.1

)

$

(33.4

)

Cost of acquisition, net of cash

(302.0

)

-

Other investing activities

(0.2

)

(5.0

)

Net cash used in investing activities

$

(355.3

)

$

(38.4

)

Financing Activities

Increase (decrease) in debt, net

$

30.9

$

(66.0

)

Proceeds from the exercise of stock options

41.3

80.6

Treasury stock purchases

(43.1

)

(2.2

)

Dividends to stockholders

(33.2

)

-

All other, net

13.9

(1.2

)

Net cash provided by financing activities

$

9.8

$

11.2

Effect of foreign exchange rate changes on cash

0.3

3.1

Net (decrease) increase in cash and cash equivalents

$

(179.0

)

$

95.3

Cash and cash equivalents at beginning of period

336.0

120.8

Cash and cash equivalents at end of period

$

157.0

$

216.1

FREE CASH FLOW

Nine Months Ended September 30,

2013 Full Year

2013

2012

Approximation

Free Cash Flow(a)

$

154.4

$

166.6

$ 300.0

Add:

Capital expenditures

55.2

46.0

90.0

Less:

Proceeds from the sale of assets

2.1

12.6

2.0

Proceeds from the exercise of stock options

41.3

80.6

50.0

Cash Flow From Operations (GAAP)

$

166.2

$

119.4

$ 338.0

(a) Free cash flow is cash flow from operations calculated in
accordance with GAAP less net capital expenditures (capital
expenditures less proceeds from the sale of assets including
property, plant and equipment) plus proceeds from the exercise of
stock options. Free cash flow does not reflect adjustments for
certain non-discretionary cash flows such as mandatory debt
repayments. Free cash flow is a measure not derived in accordance
with GAAP. Management believes that free cash flow provides
investors with helpful supplemental information about the
Company's ability to fund internal growth, make acquisitions,
repay debt and related interest, pay dividends and repurchase
common stock. This measure may be inconsistent with similar
measures presented by other companies.

FORTUNE BRANDS HOME & SECURITY, INC.

CONSOLIDATED STATEMENT OF INCOME (GAAP)

(In millions, except per share amounts)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2013

2012

% Change

2013

2012

% Change

Net Sales

$

1,125.1

$

909.1

23.8

$

3,055.5

$

2,643.2

15.6

Cost of products sold

740.2

606.8

22.0

1,993.4

1,776.7

12.2

Selling, general

and administrative expenses

259.6

236.2

9.9

767.4

699.6

9.7

Amortization of intangible assets

4.0

2.4

66.7

9.1

8.6

5.8

Restructuring charges

1.5

3.1

(51.6

)

2.7

4.1

(34.1

)

Asset impairment charge

21.2

-

100.0

21.2

-

100.0

Operating Income

98.6

60.6

62.7

261.7

154.2

69.7

Interest expense

2.1

2.0

5.0

5.5

6.6

(16.7

)

Other (income) expense, net

(0.5

)

(0.8

)

37.5

5.4

(0.6

)

1,000.0

Income before income taxes

97.0

59.4

63.3

250.8

148.2

69.2

Income taxes

32.4

19.2

68.8

84.5

47.1

79.4

Net Income

$

64.6

$

40.2

60.7

$

166.3

$

101.1

64.5

Less: Noncontrolling interests

0.4

0.2

100.0

0.8

0.8

-

Net Income attributable to

Fortune Brands Home & Security

$

64.2

$

40.0

60.5

$

165.5

$

100.3

65.0

Earnings Per Common Share, Diluted:

Net Income

$

0.37

$

0.24

54.2

$

0.97

$

0.61

59.0

Diluted Average Shares Outstanding

171.6

167.0

2.8

171.1

165.1

3.6

FORTUNE BRANDS HOME & SECURITY, INC.

(In millions, except per share amounts)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2013

2012

% Change

2013

2012

% Change

Net Sales (GAAP)

Kitchen & Bath Cabinetry

$

448.6

$

329.7

36.1

$

1,186.3

$

987.1

20.2

Plumbing & Accessories

338.1

278.2

21.5

969.6

804.2

20.6

Advanced Material Windows & Door Systems

181.0

158.4

14.3

481.7

431.4

11.7

Security & Storage

157.4

142.8

10.2

417.9

420.5

(0.6

)

Total Net Sales

$

1,125.1

$

909.1

23.8

$

3,055.5

$

2,643.2

15.6

Operating Income (Loss)

Kitchen & Bath Cabinetry

$

14.1

$

1.5

840.0

$

63.8

$

14.1

352.5

Plumbing & Accessories

65.9

48.5

35.9

176.2

127.5

38.2

Advanced Material Windows & Door Systems

8.5

9.2

(7.6

)

9.8

4.4

122.7

Security & Storage

29.5

20.8

41.8

68.1

54.2

25.6

Corporate Expenses (a)

(19.4

)

(19.4

)

-

(56.2

)

(46.0

)

(22.2

)

Total Operating Income (GAAP)

$

98.6

$

60.6

62.7

$

261.7

$

154.2

69.7

OPERATING INCOME (LOSS) BEFORE
CHARGES/GAINS RECONCILIATION

Operating Income (Loss) Before Charges/Gains (b)

Kitchen & Bath Cabinetry

$

36.8

$

13.1

180.9

$

87.0

$

27.7

214.1

Plumbing & Accessories

65.9

48.5

35.9

176.2

127.5

38.2

Advanced Material Windows & Door Systems

8.6

6.2

38.7

10.6

(0.1

)

N/A

Security & Storage

29.5

20.8

41.8

68.1

53.7

26.8

Corporate Expenses

(19.2

)

(15.7

)

(22.3

)

(50.7

)

(42.3

)

(19.9

)

Total Operating Income Before Charges/Gains (b)

121.6

72.9

66.8

291.2

166.5

74.9

Restructuring and other charges (c)

(1.6

)

(8.6

)

81.4

(2.8

)

(10.6

)

73.6

Contingent acquisition consideration adjustment (d)

-

-

-

-

2.0

(100.0

)

Asset impairment charge

(21.2

)

-

(100.0

)

(21.2

)

-

(100.0

)

Defined benefit plan actuarial losses (e)

(0.2

)

(3.7

)

94.6

(5.5

)

(3.7

)

(48.6

)

Total Operating Income (GAAP)

$

98.6

$

60.6

62.7

$

261.7

$

154.2

69.7

(a) Corporate expenses include the components of defined benefit
plan expense other than service cost including actuarial gains and
losses.

(b) Operating income (loss) before charges/gains is operating income
(loss) derived in accordance with GAAP excluding restructuring and
other charges, income from a contingent acquisition consideration
adjustment, an asset impairment charge and the impact of income and
expense from actuarial gains or losses associated with our defined
benefit plans. Operating income (loss) before charges/gains is a
measure not derived in accordance with GAAP. Management uses this
measure to evaluate the returns generated by FBHS and its business
segments. Management believes this measure provides investors with
helpful supplemental information regarding the underlying
performance of the Company from period to period. This measure may
be inconsistent with similar measures presented by other companies.

(c) Restructuring charges are costs incurred to implement
significant cost reduction initiatives and include workforce
reduction costs; "other charges" represent charges directly related
to restructuring initiatives that cannot be reported as
restructuring under GAAP. Such costs may include losses on disposal
of inventories, trade receivables allowances from exiting product
lines and accelerated depreciation resulting from the closure of
facilities and gains or losses associated with the sale of closed
facilities.

(d) Represents gain attributable to reduction of estimated liability
for contingent consideration associated with a business acquisition.

(e) Represents actuarial losses associated with our defined benefit
plans. Actuarial gains or losses in a period represent the
difference between actual and actuarially assumed experience,
principally related to liability discount rates and plan asset
returns, as well as other actuarial assumptions including
compensation rates, turnover rates, and health care cost trend
rates. The Company recognizes actuarial gains or losses immediately
in operating income to the extent they cumulatively exceed a
"corridor." The corridor is equal to the greater of 10% of the fair
value of plan assets or 10% of a plan's projected benefit
obligation. Actuarial gains or losses are determined at required
remeasurement dates which occur at least annually in the fourth
quarter. Remeasurements due to plan amendments and settlements may
also occur in interim periods during the year. Our operating income
(loss) before charges/gains reflects our expected rate of return on
pension plan assets which in a given period may materially differ
from our actual return on plan assets. Our liability discount rates
and plan asset returns are based upon difficult to predict
fluctuations in global bond and equity markets that are not directly
related to the Company's business. We believe that the exclusion of
actuarial gains or losses from operating income (loss) before
charges/gains provides investors with useful supplemental
information regarding the underlying performance of the business
from period to period that may be considered in conjunction with our
operating income as measured on a GAAP basis. We present this
supplemental information because such actuarial gains or losses may
create volatility in our operating income that does not necessarily
have an immediate corresponding impact on operating cash flow or the
actual compensation and benefits provided to our employees. The
table below sets forth additional supplemental information on the
Company's historical actual and expected rate of return on plan
assets, as well as discount rates used to value its defined benefit
obligations:

($ In millions)

Year Ended

Year Ended

December 31, 2012

December 31, 2011

%

$

%

$

Actual return on plan assets

14.5

%

$

63.7

(0.6

)%

($2.7

)

Expected return on plan assets

7.8

%

36.8

8.5

%

41.3

Discount rate at December 31:

Pension benefits

4.9

%

5.8

%

Postretirement benefits

4.6

%

5.3

%

DILUTED EPS BEFORE CHARGES/GAINS
RECONCILIATION

Diluted EPS before charges/gains is net income calculated on a
diluted per-share basis excluding restructuring and other charges,
income from a contingent acquisition consideration adjustment, asset
impairment charges and the impact of income and expense from
actuarial gains or losses associated with our defined benefit plans.
Diluted EPS before charges/gains is a measure not derived in
accordance with GAAP. Management uses this measure to evaluate the
overall performance of the Company and believes this measure
provides investors with helpful supplemental information regarding
the underlying performance of the Company from period to period.
This measure may be inconsistent with similar measures presented by
other companies.

For the third quarter of 2013, diluted EPS before charges/gains is
net income calculated on a diluted per-share basis excluding $1.6
million ($1.1 million after tax or $0.01 per diluted share) of
restructuring and other charges, an asset impairment charge of $21.2
million ($13.8 million after tax or $0.08 per diluted share) and the
impact of expense from the actuarial losses associated with our
defined benefit plan of $0.2 million ($0.2 million after tax).

For the nine months ended September 30, 2013, diluted EPS before
charges/gains is net income calculated on a diluted per-share basis
excluding $2.8 million ($1.9 million after tax or $0.01 per diluted
share) of restructuring and other charges, asset impairment charges
of $27.4 million ($20.0 million after tax or $0.12 per diluted
share) and the impact of expense from actuarial losses associated
with our defined benefit plan of $5.5 million ($3.7 million after
tax or $0.02 per diluted share).

For the third quarter of 2012, diluted EPS before charges/gains is
net income calculated on a diluted per-share basis excluding $8.6
million ($5.7 million after tax or $0.04 per diluted share) of
restructuring and other charges and the impact of expense from
actuarial losses associated with our defined benefit plans of $3.7
million ($2.4 million after tax or $0.01 per diluted share).

For the nine months ended September 30, 2012, diluted EPS before
charges/gains is net income calculated on a diluted per-share
basis excluding $10.6 million ($6.9 million after tax or $0.04 per
diluted share) of restructuring and other charges, income from a
contingent acquisition consideration adjustment of $2.0 million
($1.2 million after tax) and the impact of expense from actuarial
losses associated with our defined benefit plans of $3.7 million
($2.4 million after tax or $0.01 per diluted share).

Three Months Ended September 30,

Nine Months Ended September 30,

2013

2012

% Change

2013

2012

% Change

Earnings Per Common Share - Diluted

EPS Before Charges/Gains

$

0.46

$

0.29

58.6

$

1.12

$

0.66

69.7

Restructuring and other charges

(0.01

)

(0.04

)

75.0

(0.01

)

(0.04

)

75.0

Contingent acquisition consideration adjustment

-

-

-

-

-

-

Asset impairment charges

(0.08

)

-

-

(0.12

)

-

-

Defined benefit plan actuarial losses

-

(0.01

)

-

(0.02

)

(0.01

)

(100.0

)

Diluted EPS (GAAP)

$

0.37

$

0.24

54.2

$

0.97

$

0.61

59.0

RECONCILIATION OF FULL YEAR 2013 EARNINGS
GUIDANCE TO GAAP

For the full year, the Company is targeting diluted EPS before
charges/gains to be in the range of $1.47 to $1.49 per share. On a
GAAP basis, the Company is targeting diluted EPS to be in the range
of $1.32 to $1.34 per share. The Company's GAAP basis EPS range
assumes the Company incurs no additional actuarial gains or losses
associated with its defined benefit plans subsequent to September
30, 2013.

FORTUNE BRANDS HOME & SECURITY, INC.

RECONCILIATION OF FULL YEAR DILUTED EPS BEFORE CHARGES/GAINS TO
GAAP DILUTED EPS

(unaudited)

For the twelve months ended

December 31, 2012

Diluted EPS before charges/gains - full year

$

0.89

Diluted EPS before charges/gains (a)

$

0.89

Restructuring and other charges

(0.04

)

Contingent acquisition consideration adjustment

-

Asset impairment charges

(0.06

)

Defined benefit plan actuarial losses

(0.16

)

Income tax gains

0.08

Diluted EPS (GAAP)

$

0.71

(a) For the year ended December 31, 2012, diluted EPS before
charges/gains is net income calculated on a diluted per-share basis
excluding $10.0 million ($6.6 million after tax or $0.04 per diluted
share) of restructuring and other charges, income from a contingent
acquisition consideration adjustment of $2.0 million ($1.2 million
after tax), asset impairment charges of $15.8 million ($9.7 million
after tax or $0.06 per diluted share) pertaining to the impairment
of certain indefinite lived trade names, income tax gains pertaining
to the favorable resolution of tax audits of $12.7 million ($0.08
per diluted share) and the impact of expense from actuarial losses
associated with our defined benefit plans of $42.2 million ($26.2
million after tax or $0.16 per diluted share). Diluted EPS before
charges/gains is a measure not derived in accordance with GAAP.
Management uses this measure to evaluate the overall performance of
the Company and believes this measure provides investors with
helpful supplemental information regarding the underlying
performance of the Company from period to period. This measure may
be inconsistent with similar measures presented by other companies.

FORTUNE BRANDS HOME & SECURITY, INC.

(In millions)

(Unaudited)

RECONCILIATION OF GAAP NET INCOME TO
EBITDA BEFORE CHARGES/GAINS

Three Months Ended September 30,

Nine Months Ended September 30,

2013

2012

% Change

2013

2012

% Change

Net Income

$

64.6

$

40.2

60.7

$

166.3

$

101.1

64.5

Depreciation (a)

$

19.4

$

19.9

(2.5

)

$

57.3

$

60.7

(5.6

)

Amortization of intangible assets

4.0

2.4

66.7

9.1

8.6

5.8

Restructuring and other charges

1.6

8.6

(81.4

)

2.8

10.6

(73.6

)

Contingent acquisition consideration adjustment

-

-

-

-

(2.0

)

100.0

Interest expense

2.1

2.0

5.0

5.5

6.6

(16.7

)

Asset impairment charges

21.2

-

100.0

27.4

-

100.0

Defined benefit plan actuarial losses

0.2

3.7

(94.6

)

5.5

3.7

48.6

Income taxes

32.4

19.2

68.8

84.5

47.1

79.4

EBITDA BEFORE CHARGES/GAINS (b)

$

145.5

$

96.0

51.6

$

358.4

$

236.4

51.6

(a) Depreciation excludes accelerated depreciation of $9.2 million
for the three months ended September 30, 2012 and ($0.2) million and
$9.7 million for the nine months ended September 30, 2013 and
September 30, 2012, respectively. Accelerated depreciation is
included in restructuring and other charges.

(b) EBITDA before charges/gains is net income derived in accordance
with GAAP excluding restructuring and other charges, income from a
contingent acquisition consideration adjustment, asset impairment
charges, the impact of income and expense from actuarial gains or
losses associated with our defined benefit plans, depreciation,
amortization of intangible assets, interest expense, and income
taxes. EBITDA before charges/gains is a measure not derived in
accordance with GAAP. Management uses this measure to assess returns
generated by FBHS. Management believes this measure provides
investors with helpful supplemental information about the Company's
ability to fund internal growth, make acquisitions and repay debt
and related interest. This measure may be inconsistent with similar
measures presented by other companies.

FORTUNE BRANDS HOME & SECURITY, INC.

Reconciliation of Income Statement - GAAP to Before Charges/Gains
Information

Three Months Ended September 30,

$ in millions, except per share amounts

(unaudited)

Before Charges/Gains adjustments

Restructuring

Defined benefit

Asset

Before

GAAP

and other

plan actuarial

impairment

Charges/Gains

(unaudited)

charges

losses

charge

(Non-GAAP)

2013

THIRD QUARTER

Net Sales

$

1,125.1

-

-

-

Cost of products sold

740.2

(0.1

)

0.5

-

Selling, general & administrative expenses

259.6

-

(0.7

)

-

Amortization of intangible assets

4.0

-

-

-

Restructuring charges

1.5

(1.5

)

-

-

Asset impairment charge

21.2

-

-

(21.2

)

Operating Income

98.6

1.6

0.2

21.2

121.6

Interest expense

2.1

-

-

-

Other income, net

(0.5

)

-

-

-

Income before income taxes

97.0

1.6

0.2

21.2

120.0

Income taxes

32.4

0.5

-

7.4

Net Income

$

64.6

1.1

0.2

13.8

$

79.7

Less: Noncontrolling interests

0.4

-

-

-

Net Income attributable

to Fortune Brands Home & Security, Inc.

$

64.2

1.1

0.2

13.8

$

79.3

Average Diluted Shares Outstanding

171.6

171.6

Diluted EPS

0.37

0.46

2012

Net Sales

$

909.1

-

-

-

Cost of products sold

606.8

(5.5

)

(1.5

)

-

Selling, general & administrative expenses

236.2

-

(2.2

)

-

Amortization of intangible assets

2.4

-

-

-

Restructuring charges

3.1

(3.1

)

-

-

Operating Income

60.6

8.6

3.7

-

72.9

Interest expense

2.0

-

-

-

Other income, net

(0.8

)

-

-

-

Income before income taxes

59.4

8.6

3.7

-

71.7

Income taxes

19.2

2.9

1.3

-

Net Income

$

40.2

5.7

2.4

-

$

48.3

Less: Noncontrolling interests

0.2

-

-

-

Net Income attributable

to Fortune Brands Home & Security, Inc.

$

40.0

5.7

2.4

-

$

48.1

Average Diluted Shares Outstanding

167.0

167.0

Diluted EPS

0.24

0.29

FORTUNE BRANDS HOME & SECURITY, INC.

Reconciliation of Income Statement - GAAP to Before Charges/Gains
Information

Nine Months Ended September 30,

$ in millions, except per share amounts

(unaudited)

Before Charges/Gains adjustments

Contingent

Restructuring

acquisition

Defined benefit

Asset

Before

GAAP

and other

consideration

plan actuarial

impairment

Charges/Gains

(unaudited)

charges

adjustment

losses

charges

(Non-GAAP)

2013

YEAR TO DATE

Net Sales

$

3,055.5

-

-

-

-

Cost of products sold

1,993.4

(0.1

)

-

(2.8

)

-

Selling, general & administrative expenses

767.4

-

-

(2.7

)

-

Amortization of intangible assets

9.1

-

-

-

-

Restructuring charges

2.7

(2.7

)

-

-

-

Asset impairment charge

21.2

-

-

-

(21.2

)

Operating Income

261.7

2.8

-

5.5

21.2

291.2

Interest expense

5.5

-

-

-

-

Other expense, net

5.4

-

-

-

(6.2

)

Income before income taxes

250.8

2.8

-

5.5

27.4

286.5

Income taxes

84.5

0.9

-

1.8

7.4

Net Income

$

166.3

1.9

-

3.7

20.0

$

191.9

Less: Noncontrolling interests

0.8

-

-

-

-

Net Income attributable

to Fortune Brands Home & Security, Inc.

$

165.5

1.9

-

3.7

20.0

$

191.1

Average Diluted Shares Outstanding

171.1

171.1

Diluted EPS

0.97

1.12

2012

Net Sales

2,643.2

-

-

-

-

Cost of products sold

1,776.7

(6.5

)

-

(1.5

)

-

Selling, general & administrative expenses

699.6

-

2.0

(2.2

)

-

Amortization of intangible assets

8.6

-

-

-

-

Restructuring charges

4.1

(4.1

)

-

-

-

Operating Income

154.2

10.6

(2.0

)

3.7

-

166.5

Interest expense

6.6

-

-

-

-

Other income, net

(0.6

)

-

-

-

-

Income before income taxes

148.2

10.6

(2.0

)

3.7

-

160.5

Income taxes

47.1

3.7

(0.8

)

1.3

-

Net Income

$

101.1

6.9

(1.2

)

2.4

-

$

109.2

Less: Noncontrolling interests

0.8

-

-

-

-

Net Income attributable

to Fortune Brands Home & Security, Inc.

$

100.3

6.9

(1.2

)

2.4

-

$

108.4

Average Diluted Shares Outstanding

165.1

165.1

Diluted EPS

0.61

0.66

FORTUNE BRANDS HOME & SECURITY, INC.

RECONCILIATION OF SEGMENT OPERATING INCOME (LOSS) BEFORE
CHARGES/GAINS TO GAAP OPERATING INCOME (LOSS)

(In millions)

(unaudited)

For the three months ended

For the nine months ended

September 30,2013

September 30,2012

$ change

% change

September 30,2013

September 30,2012

$change

% change

KITCHEN & BATH CABINETRY

Operating income before charges/gains(a)

$

36.8

$

13.1

$

23.7

180.9

$

87.0

$

27.7

$

59.3

214.1

Restructuring charges

(1.4

)

(2.6

)

1.2

46.2

(1.9

)

(3.6

)

1.7

47.2

Other charges (b)

Cost of products sold

(0.1

)

(9.0

)

8.9

98.9

(0.1

)

(10.0

)

9.9

99.0

Asset impairment charge

(21.2

)

-

(21.2

)

(100.0

)

(21.2

)

-

(21.2

)

(100.0

)

Operating income (GAAP)

$

14.1

$

1.5

$

12.6

840.0

$

63.8

$

14.1

$

49.7

352.5

PLUMBING & ACCESSORIES

Operating income before charges/gains(a)

$

65.9

$

48.5

$

17.4

35.9

$

176.2

$

127.5

$

48.7

38.2

Operating income (GAAP)

$

65.9

$

48.5

$

17.4

35.9

$

176.2

$

127.5

$

48.7

38.2

ADVANCED MATERIAL WINDOWS & DOOR SYSTEMS

Operating income (loss) before charges/gains(a)

$

8.6

$

6.2

$

2.4

38.7

$

10.6

$

(0.1

)

$

10.7

N/A

Restructuring charges

(0.1

)

(0.5

)

0.4

80.0

(0.8

)

(1.0

)

0.2

20.0

Other charges (b)

Cost of products sold

-

3.5

(3.5

)

(100.0

)

-

3.5

(3.5

)

(100.0

)

Contingent acquisition consideration adjustment

-

-

-

-

-

2.0

(2.0

)

(100.0

)

Operating income (loss) (GAAP)

$

8.5

$

9.2

$

(0.7

)

(7.6

)

$

9.8

$

4.4

$

5.4

122.7

SECURITY & STORAGE

Operating income before charges/gains(a)

$

29.5

$

20.8

$

8.7

41.8

$

68.1

$

53.7

$

14.4

26.8

Restructuring charges

-

-

-

-

-

0.5

(0.5

)

(100.0

)

Operating income (GAAP)

$

29.5

$

20.8

$

8.7

41.8

$

68.1

$

54.2

$

13.9

25.6

(a) Operating income (loss) before charges/gains is operating income
(loss) derived in accordance with GAAP excluding restructuring and
other charges, an asset impairment charge and income from a
contingent acquisition consideration adjustment. Operating income
(loss) before charges/gains is a measure not derived in accordance
with GAAP. Management uses this measure to evaluate the returns
generated by FBHS and its business segments. Management believes
this measure provides investors with helpful supplemental
information regarding the underlying performance of the Company from
period to period. This measure may be inconsistent with similar
measures presented by other companies.

(b) Other charges represents charges directly related to
restructuring initiatives that cannot be reported as restructuring
under GAAP. Such costs may include losses on disposal of
inventories, trade receivables allowances from exiting product lines
and accelerated depreciation resulting from the closure of
facilities and gains or losses associated with the sale of closed
facilities.